TAX RELIEF FOR FIRST-TIME BUYERS
The abolition of SDLT for first -time buyers in England and Wales was a welcome Budget announcement. From 22 November 2017, first-time buyers will be relieved from SDLT on the first 300k paid for their property, so long as the value of the property does not exceed 500k. The measure is expected to benefit 95% of first-time buyers saving them an average of £1660 each.
In a similar move, the Scottish Government announced in it’s budget that it will be introducing LBTT relief on the first 175k paid by first-time buyers in Scotland.
Although considerably less than the SDLT relief, this is expected to cover most properties in Scotland, and will exclude 80% of first-time buyers from LBTT entirely. Additionally, as there is no upper limit on the value of the property, the tax paid by all first-time buyers will be reduced.